GBP/USD Medium Term Elliott Wave Analysis

The chart presents my long term wave count. It suggests that there was a multi months bullish triangle and the current rise is the movement after its end. It begin at 1.8514 (October 2006) and is developing as a potential terminal impulse (ending diagonal). Such a pattern appears always in the end of a movement so if my suggestion comes true, a reversal of the up-trend started from 2001 year is forthcoming. If I am right, wave 5 of the potential terminal impulse should be very close to its end and a fall below the trendline 2-4 shown on the chart will confirm this idea. In such a case one should expect very sharp and fast fall with a minimum target 1.8514 (the beginning of wave (C)), and much lower thereafter. A key resistance is 2.0617 (at this level wave 3 will become the shortest wave in the impulse which is impossible). The idea for a potential terminal impulse is supported by the MACD indicator because if we see a fall from current levels, a triple divergence will become a fact which is an extremely bearish signal.

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